We depend on our smartphones more than ever. They've made texting, especially among younger device owners, the preferred way to communicate. Crooks know this, too. Including tax identity thieves. The Internal Revenue Service says it's seen a recent rash of tax-related texting scams. These latest schemes, known as smishing because they use SMS (short message service) or MMS (multimedia messaging service), look like they are coming from the IRS. Don't fall for these fake IRS texts, which the tax agency says have increased exponentially this year. Exponential fake tax texts: So far in 2022, the IRS has identified and reported... Read more →
Cryptocurrency continues to make inroads into our daily lives, including our taxes. On Sept. 1, Colorado officially became the first U.S. state to allow its residents to pay their state taxes in bitcoin. It's a pretty safe assumption that those Centennial State residents who pay state taxes with bitcoin also will be forthcoming at the federal level when it comes to their digital assets. But for those who are less transparent, the Internal Revenue Service is stepping up its efforts to know about and collect on crypto transactions. Legal action against hidden crypto: Last week, the IRS obtained a so-called... Read more →
If you must have follow-up discussions with the Internal Revenue Service, one of the rights guaranteed under the Taxpayer Bill of Rights is the option to hire an authorized representative. That can be anyone, from a relative to a paid tax professional. However, in some cases, your representative must be authorized to practice before the IRS. You also need to make sure to officially designate your chosen tax representative, or as it's known in tax-speak, third-party authorization. That's done by filing a written declaration with the IRS — Form 2848 (more on this later) can be used here — stating... Read more →
Just more than a year ago, a Parkville, Missouri, man pleaded guilty to charges filed in two separate federal investigations. One was a case involving conspiracy to commit wire and major program fraud. The defendant admitted to his role in a $335 million scheme to defraud federal programs that award contracts to firms owned by minorities, veterans, and service-disabled veterans. The second charge was one of tax evasion to the tune of $615,847. The Missouri man confessed to claiming fraudulent business expenses on his 2016 tax year return and filing false returns from 2013 to 2016. Last Thursday, Sept. 22,... Read more →
Photo by Karolina Grabowska I have money in the stock market. When I was a younger investor, I checked my assets a lot. Like almost every day. Then I realized that was just going to make me crazy(ier), so I shifted to a monthly review of where my holdings were. Now I just check quarterly. Most of the reason for my reduction in the frequency of my equity evaluations is that I'm at that part of my life where my holdings are pretty much set for my fast-approaching retirement years. The good news is that the recent market dive, while... Read more →
You can quit double checking your calendar. It is indeed fall, even if the cooler temperatures haven't gotten the message across much of the United States. If you have children, autumn is noted by the kiddos returning to classrooms. That's happening in more places, as we seem to be shifting from pandemic COVID-19 to the coronavirus' endemic phase. Many parents also discover at this time of year that their youngsters have grown. A lot. That means new outfits. In big families, nuclear and extended, outgrown outfits turn into hand-me-downs. But if you have no one who'll take your still good,... Read more →
If you've yet to file a 2019 or 2020 tax year return, you should get to work on that oversight soon. Like get them done by Sept. 30 soon. By meeting that end-of-this-month date, you may be able to avoid the usual late-filing penalty. It's typically assessed at a rate of 5 percent per month, up to 25 percent of the unpaid tax. And since the 2019 and 2020 due dates are long gone, that could be a substantial abated amount, depending on how much tax you owe. Helping both taxpayers and tax agency: The Internal Revenue Service's penalty relief... Read more →
Black's, an iconic Central Texas barbecue chain, was caught improperly distributing tip money to managers, instead of the 270 employees to whom it should have been paid. Those restaurant workers now have their proper gratuities, which are taxable income. Being a restauranteur has always been a challenge. The same can be said for eatery staff. Then along came the COVID-19 pandemic, amped up the workplace issues both owners and employees face. So what else could complicate things? Tips. In one famed Central Texas BBQ joint, it was the way tips were collected and distributed among workers. The U.S. Department of... Read more →
Satellite image of Hurricane Fiona's landfall on the southwestern corner of Puerto Rico at 3:35 p.m. Atlantic Standard Time on Sunday, Sept. 18. (National Oceanic and Atmospheric Administration photo) Fiona, the first major hurricane of the 2022 tropical season, not only wiped out power to most of Puerto Rico, it also was responsible for four deaths on the island. Hurricane Fiona made landfall at the southwestern edge of Puerto Rico the afternoon of Sunday, Sept. 18, but was big and strong enough to wreak havoc across the entire U.S. island territory. The strike came almost exactly five years after Hurricane... Read more →
If you believe cryptocurrency has democratized financial services and leveled the financial playing field, then have we got a deal for you. And by deal, we mean scam. That's a major finding of recently released U.S. Department of Treasury report, which also wants regulators to take more action against crypto fraud and scammers. The report, Crypto-Assets: Implications for Consumers, Investors, and Businesses, is in response to President Joe Biden's March 9 Executive Order 14067, which, directed Treasury (among other agencies) to examine ways to "ensure responsible development of digital assets." That's going to take a multi-agency effort, according to Treasury,... Read more →
Photo by Vidal Balielo Jr. The Child Tax Credit was expanded in 2021 to help families coping with the adverse economic effects of the COVID-19. During the height of the pandemic, the American Rescue Plan Act (ARPA) temporarily bumped up the amount available via the already popular CTC. It went from $2,000 per qualifying child to $3,600 a year for children younger than age 6, and $3,000 per child for youngsters ages 6 to 17. The credit amounts were phased out once tax-filing families hit certain income levels. More of the increased CTC also was refundable, meaning that if the... Read more →
Photo by Alexander Mils So far this year, 17 states have or will issue rebate money to their residents. Massachusetts is about to up that list count to 18, thanks to a 1986 state law. The Bay State's Department of Revenue this summer reported a fiscal-year-end tax revenue surplus of nearly $3 billion. Once the state auditor certifies the amount, which at the last unofficial count was $2.941 billion, the tax cap law known as Chapter 62F takes effect. The payback law, a referendum approved 36 years ago by Massachusetts voters, requires the state rebate its taxpayers a percentage of... Read more →
You have lots of choices when it comes to helping your neighbors and community. There's even an option if taxes are of particular interest to you. Hey, it happens. You are, after all, reading my tax blog right now. If that's you, then the Internal Revenue Service wants you to fill up your free time by helping people prepare and file their tax returns next year. The IRS and its community partners are recruiting people to be a part of the Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs during the coming 2023 tax season.... Read more →
Inflation is still a concern, for consumers and politicians, but it is easing a bit (at least for some consumers). One reason for the change is falling gas prices. GasBuddy reported on Sept. 12 that for the thirteenth consecutive week, the nation’s average per-gallon gas price dropped. It went to $3.67 per gallon, down 7.6 cents from a week ago. AAA's daily tracker shows a Sept. 15 national per gallon average of $3.698. But those are averages. Your pump prices may vary. Patrick De Haan, head of petroleum analysis at GasBuddy, noted in the latest analysis that there are "drastically... Read more →
Singer-songwriter James Taylor provided the soundtrack for the White House's Sept. 13 celebration of the enactment of the Inflation Reduction Act. (White House photo via Facebook) The Biden Administration this week celebrated the enactment of the Inflation Reduction Act (IRA) with a ceremony on the White House lawn. And while a government report on inflation that came out the same day warned of continuing inflation costs, President Joe Biden and attendees didn't let the new dampen the festivities. The White House insists that the IRA will work as planned, and Biden touted the law's provisions, including the climate-change-prompted energy provisions,... Read more →
U.S. Army Corps of Engineers (USACE) Vicksburg District engineers at the O.B. Curtis Water Treatment Plant in Jackson, Mississippi, after flooding led to a water crisis in the state's capital city. The pumping system is getting back online. In the meantime, a couple of Uncle Sam's agencies are offering residents relief. (USACE photo by Sabrina Dalton via Wikipedia Commons) Thursday, Sept. 15, is the deadline for most taxpayers who must make third quarter estimated tax payments. Some Mississippi filer, however, get until next February. But the reason for the extension is not one they, or anyone, would want. Heavy rains... Read more →
The COVID-19 pandemic ignited an explosion of side hustles, with many folks cobbling together multiple independent operations to replace traditional jobs lost to the virus. The U.S. economy has picked up, and many businesses are forcing bringing their former and work-from-home staff back into the office. But side hustles remain popular. Most side hustle for more than money: Even where they have wage-paying work, many Americans also have side jobs, according to a survey by Insuranks, a small business insurance marketplace. Ninety-three percent of the adults surveyed by Insuranks said they have an added job alongside their main employment positions.... Read more →
Welcome to the first Sunday of the 2022 National Football League season. It's the best day of the week for U.S. professional football fans. Yeah, I know the first game was last Thursday night and the Buffalo Bills sent a message to the defending Super Bowl champs, in L.A., no less, and everyone else. But today is full of America's most popular sport. There are 14 match-ups, starting at noon Central Time. That's where I am, so that's that flyover clock reading that my search (shown below) gave me. Adjust accordingly for your team and time zone. Then the first... Read more →